iPhone app iPad app Android phone app Android tablet app More

Featuring fresh takes and real-time analysis from HuffPost's signature lineup of contributors
Kelly Kleiman

GET UPDATES FROM Kelly Kleiman
 

The Public Be Damned: Using the Amtrak Script to Kill the Post Office

Posted: 12/08/11 04:15 PM ET

If the conversation about the end of the U.S. Postal Service sounds familiar, it's not just because we've heard variations of it since 1970, when the old Post Office Department became a separate business. It's also because the destruction of mail delivery closely parallels the wrecking of American passenger rail. Apparently the Congress has it in for quasi-public institutions with work forces composed disproportionately of African-Americans.

Passenger rail has always been a losing proposition; the money is in freight. But until the late 20th Century, as the price of using public assets -- tracks, switches, signals and the rest -- freight railroad companies were required to carry passengers at a loss. Then somehow this social compact broke down. Both railroads and their regulators started talking as if railroading were an ordinary commercial enterprise instead of a public utility. Ordinary for-profits aren't expected to maintain business lines at a loss. Indeed, to the extent they do so, they're considered incompetent. So the people making money from national railroad facilities were able to persuade Congress that they shouldn't have to bother maintaining passenger service. In other words, the railroads figured out how to shift their burden -- what had been a simple cost of doing business -- to the public. Voila: Amtrak.

Independent passenger rail was bound to be a financial failure, and it was. So year after year after year Congress has complained about Amtrak's losses and tried to reduce them by shrinking the system, by now it's small enough to drown in the proverbial bathtub. Little-noticed along the way is the fact that many of the jobs being lost belong to black people.

The Brotherhood of Sleeping Car Porters was the first black-led union recognized by the AFL, and probably the most powerful union dominated by African-Americans in the United States. Much of the foundation of the black middle class was laid on the decent wages and benefits and pensions fought for and won by that union. So whatever hurts Amtrak -- and these days, pretty much everything does -- also hurts the African-American community.

Now connect the dots to the Postal Service. Mail, like rail, is a public utility. (If you doubt that, take a look at the Constitution, where the Post Office rates a specific mention.) A group of companies -- the mailing houses and catalog producers -- get to use this public utility to make a private profit, and they're doing very well by that arrangement.

Once again, though, the price they were supposed to be paying for this benefit was to subsidize
service to individuals. So once again, someone re-conceived this public utility as an independent corporation subject only to the iron law of profit and loss. Now the profitable commercial service can continue on its merry way while the money-losing public service is forced to resort to the kind of cuts which predict -- if they don't actually cause -- an imminent visit to the scrapheap (or bathtub).

And once again, an outsized group of the fired employees are African-Americans, because the Post Office was an equal opportunity employer before the phrase had even been coined. So right in the middle of the Great Recession another pillar of the black middle class is knocked down.

There is an alternative to the current flood of crocodile tears over the death of written communication. We could return to the social compact that regarded mail service -- and rail service, for that matter -- as something to be paid for by the people who benefit from it most. That doesn't mean those of us who receive an occasional Saturday letter, or occasionally take the Metroliner -- it means the freight shippers. In the case of the Post Office, at least, the public has been subsidizing them instead of the other way around. End that particular piece of corporate welfare and see how many post offices can suddenly re-open.

Perhaps it's only a coincidence that these two agencies, staffed by black workers, have been asked to do the impossible and then punished for failing to manage it. But coincidences of this kind -- which permit imposition of exceptional harm on one group provided the primary purpose of the harm is making money -- are precisely what is meant by the term "institutional racism."

It isn't too late to remember that rail and mail are public utilities and to govern them accordingly. Otherwise, we're just echoing the words of an earlier Gilded Age, spoken by a railway man as he was canceling a mail train: "The public be damned!"

 
If the conversation about the end of the U.S. Postal Service sounds familiar, it's not just because we've heard variations of it since 1970, when the old Post Office Department became a separate bu...
If the conversation about the end of the U.S. Postal Service sounds familiar, it's not just because we've heard variations of it since 1970, when the old Post Office Department became a separate bu...
 
 
  • Comments
  • 81
  • Pending Comments
  • 0
  • View FAQ
Comments are closed for this entry
View All
Favorites
Bloggers
Recency  | 
Popularity
Page: 1 2  Next ›  Last »  (2 total)
photo
enterhere
Held hostage by Domestic Terrorists...Republicans.
08:41 PM on 12/12/2011
Can't wait to see them repubs finally kill off an agency that is mandated by the Constitution. (I guess that they don't have to defend or protect that part of it.) Then after we have Post Office INC. in place of the US Postal SERVICE I would like to see the look on the face of grandmother when she goes to mail a birthday card to her grandchild in the next town over and is told: that will be $6.00 please.
photo
groland
socially left, fiscally right
12:47 PM on 12/12/2011
The Post Office must serve every small town even in the most isolated places. No private carrier would do this, at least not at the rates charged by the USPS.

The Post Office should get into the money transfer, check cashing, and bill payment business. There are many low income people who cannot afford to have checking accounts that could be well served by the USPS. The German Post system provides a similar service including savings accounts. Of course the check cashing and payday loan industry would lobby against this and Congress would surely do their bidding.
This user has chosen to opt out of the Badges program
photo
08:18 AM on 12/12/2011
The post office and amtrak have gone the way of the buggy whip industry. It's time to let both die a peaceful death and let the free market pick up the pieces and make these industries profitable on a smaller scale.
This user has chosen to opt out of the Badges program
photo
MSROADKILL612
love auto biographys. any appS to write mine?
08:15 PM on 12/11/2011
OK - here is my valuable advice free

a/
most neither want nor need home delivery - just as happy to collect from a 7/11 or gas station - an alliance?

b/ whats w/ the huge queues for trifling purchases - automate - as banks did w/ ATMS

c/ a stamp is 44c - gotta be kidding - who needs 1c change? - no such thing in oz - all is rounded to nearest 5c

d/ we gotta get over this urgency thing - 90% turn out to be not so urgent after all
Realist2011
beware false profits....
08:20 PM on 12/10/2011
I guess the part I don't understand is why a bulk mailer's catalogs or whatever should be provided a discount. You don't get that with much of anything these days unless it's a bulk rate for delivery to a single point. If you're sorting and delivering these credit card offers or whatever crap they're mailing to individual mailboxes instead of a single point, then it costs as much, or almost as much as first class mail. Charge accordingly.
05:58 PM on 12/10/2011
"Perhaps it's only a coincidence that these two agencies, staffed by black workers, have been asked to do the impossible and then punished for failing to manage it."

Good job... you nailed it "coincidence" aka you've committed a Type I error...

This is a black and red issue not a black and white issue... Both agencies are heavily in the red when there is a sufficient amount of private companies or products in the black that would gladly take up the slack if these two institutions disappeared alleviating taxpayers and eliminating inefficiencies in the American economy.

I do agree that we should get rid of ALL subsidies as the are anti-competitive.
This user has chosen to opt out of the Badges program
07:17 PM on 12/09/2011
Our wasted leaders are so involved with themselves and their corrupt ideologies thatt they willingly allow basic institutions of civilization to collapse. The only thing that common people deserve is commonality.
This user has chosen to opt out of the Badges program
05:05 PM on 12/09/2011
The fact that passenger rail failed because there are better ways to get from a to b should be ignored? Great lets pour more money into a failed enterprise,the cost of Amtrak at a per job ratio is dismal. The post office should not be eliminated, it does however need to change to exist in the reality of it's shrinking role in the nations preferred methods of communication.
11:17 AM on 12/10/2011
Passenger rail didn't fail because there were better ways to get around; passenger rail failed because we provided massive subsidies to the other ways to get around and then for good measure, government taxed the RR's to help build the highways. Imagine owning a Wendy's and being taxed to support McDonalds!

We people believe that the only cost of driving is the gas in their tank, they're going to chose to drive, especially for the convenience. Make them pay the full cost of driving up front, instead of via other taxes, and they'll reconsider.
This user has chosen to opt out of the Badges program
05:23 AM on 12/11/2011
Explain the failure of Amtrak then, if it had ever had sufficient ridership would it loose billion yearly, passenger rail ridership plummeted in the 50's because of the quicker and more convenient form of airplanes. It is cheaper for all concerned to build an airport than to run railway lines to every isolated city or town, Taking the train from New York to Paris has yet to be worked out.
Federal highway funds are paid by motorists every time they fill their tank, read the yellow sticker found on every legal gas pump denoting the tax you are paying per gallon.Some of the funds collected by the excise tax on gasoline are being used to develop alternative forms of transportation, so I guess the cycle continues, tax what is at hand to create something new. Blame the government for that one.
photo
HUFFPOST SUPER USER
spinotter11
Spinning through life and trying to understand it.
03:25 PM on 12/09/2011
"the price of using public assets -- tracks, switches, signals and the rest"

What public assets? Except for Conrail, which is extinct, and the main Amtrak line from Boston to Washington, which didn't exist at the time she is talking about, aren't all railroads privately owned?
This user has chosen to opt out of the Badges program
photo
MSROADKILL612
love auto biographys. any appS to write mine?
03:19 PM on 12/09/2011
lets not forget - usp owns every home post box in usa - a huge asset - no junk mail w/o they say so
This user has chosen to opt out of the Badges program
photo
01:37 PM on 12/09/2011
Bravo Kelly!

Right on.
01:23 PM on 12/09/2011
Not sure I agree with the economic argument here. The bulk shippers provide enormous leverage to the USPS. Even without the bulk mailers, the USPS would still need to deliver to every home in every town. So the vast majority of the infrastructure cost is fixed. It would seem that the volumes the bulk shippers provide adds significant incremental margin to the USPS bottom line. If those shippers disappeared, the USPS platform would collapse through idle capacity
photo
HUFFPOST SUPER USER
chriss0114
the meanderings of a madman
02:56 PM on 12/09/2011
the bulk must be processed sorted and loaded, not just delievered and that is subsidized via reduced rates

if they had to send it via FEDEX or UPS it would be at a greatly increased cost and in the USPS goes down your mail service will goe up in cost significantly and you may need to go to a central warehouse to pick it it and drop it off as well as pay a rental fee for the mailbox

rural people will really have to drive far
06:24 PM on 12/09/2011
You are making a different argument. The usps has massive over capacity because of the reduction in personal mail. That capacity needs to be filled or the usps fails. In that situation, bulk mailers are able to get good pricing just like any large customer (like walmart for a food manufacturer). The usps needs the bulk mailers and makes tons of money on them. The sorting cost is well below the cost bulk mailers pay.
photo
HUFFPOST BLOGGER
Kelly Kleiman
01:13 PM on 12/09/2011
To be clear: I am aware that the rail-freight companies own the railroad tracks. When the government gave them the land, they also gained title to what was built on it. But the government gave the railroads the land in return for their agreeing to provide a public service, which they have spent subsequent history trying to avoid doing.
photo
HUFFPOST SUPER USER
chriss0114
the meanderings of a madman
03:00 PM on 12/09/2011
fantastic article

I do believe there is much racism in many decisions I am losthe to believe that is the driver with rail and postal service

I do not deny it could be a reason.

I fail to see direct evidence beyond pure greed like when the auto companies bought up the trolley services and rails and trashed them so people would buy cars

This has been proposed and tried before with private companies wanting to take over postal services--the fear being they would take the profitable routes leaving the government with the non-profitable routes--a partial privitization of select areas
photo
HUFFPOST SUPER USER
spinotter11
Spinning through life and trying to understand it.
03:27 PM on 12/09/2011
You answered my question above. However, was that agreement specified in a contract? Was it to be forever? I doubt it.
09:43 AM on 12/09/2011
Or a counter argument Kelly is the unions have trashed yet another industry in the market place.

The US was an industry leader in energy production and with cheap fuel, built an extensive highway infrastructure system that connected our vast country. Europe, which which is more congested, has high fuel costs, many borders and suffered through two World Wars that destroyed its industrial bas and infrastructure it was rail that became the dominate mode of transportation.

How long will Democrats continue to justify the MASSIVE amounts of taxpayer money they throw at Amtrack and the Post Office in return for their union support, dues "contributions" and votes??

SImilar to GM's sad story the Post Office is in the red 11 billion every year and 8 billion of that is retiree pensions and Health Care benefits. Private industry could turn Amtrack and the Post Office around, UPS and FedEx make a profit every day but it is VERY UNLIKELY they could do so with the current unions.

Obama bailed out GM not to save jobs but to save the UAW, its dues "contributions", political support and votes. Had Obama not bailed out GM a Chapter 11 bankruptcy judge would have been free to void GM's UAW contracts........... a crippling bow to an already shrinking union culture.
This user has chosen to opt out of the Badges program
11:30 AM on 12/09/2011
You are way in error sir. The PO. has been paying it's own way since 1971. We have actually put money in the general fund for years. The statement po in the red 11 billion every year is ignorant, [not an insult] It's just wrong, I suggest you check your sources
12:04 PM on 12/09/2011
But isn't UPS unionized? And doesn't the Postal Srevice deliver millions of pieces of Fed Ex and UPS mail "the last mile" everyday so they can stay profitible? Thought these things were common knowledge.
satyrday
If my micro-bio is way too long, will it be trunca
09:02 AM on 12/09/2011
The USPS was slimming down appropriately and doing fine until the Republican congress in 2006 decided they needed to kill them faster. They can't stand when something in the government works.

And by the way, when is our military going to start showing a profit?